Welcome back to the Alt Goes Mainstream podcast.
We were live from iCapital Connect’s conference in Phoenix, where we sat down with some of the industry’s leaders across asset management and wealth management.
Eric Muller is Portfolio Manager & Partner, CEO - BDCs for Oak Hill Advisors (OHA). Oak Hill, acquired by T. Rowe Price in December 2021, has $112B AUM across performing and distressed credit-related investments in North America, Europe, and other geographies.
Eric shares responsibility for leading OHA’s private credit business and has primary management responsibility for OHA’s BDCs. Prior to joining OHA in 2018, Mr. Muller worked in Goldman Sachs’ Merchant Banking Division, where he was a Partner in the Private Credit Group, responsible for leading its private senior lending business in North America and managing vehicles that invested across the spectrum of the credit market.
With credit on the minds of many, Eric provided a nuanced perspective on the current state of the credit markets and where to uncover both opportunity and risk in the market.
Eric and I had a fascinating conversation about the current state of private credit. We discussed:
How his experience in private equity has informed how he approaches credit investing.
What are the risk / reward trade-offs in private credit?
Why credit investors need to be pessimists.
How LPs should evaluate private credit firms and why the ability to do workouts matters.
How do private equity sponsors pick their credit partners?
Why private credit firms might have higher recovery rates than liquid credit markets.
How OHA’s combination with T. Rowe Price has helped the firm productize for the wealth channel.
What are misconceptions about private credit risk and liquidity?
Where are the opportunities in liquid credit versus illiquid credit?
Thanks Eric for sharing your wisodm, expertise, and passion for private credit and private markets.
A word from AGM podcast sponsor, Ultimus Fund Solutions
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That’s Ultimus: high-tech, high-touch solutions for over 450 clients and 2,500 funds with $775B in assets under administration. Backed by an expert team of over 1,200 employees, they place client service at the core of their business, helping you navigate complexity during your fund structuring or launch and then supporting you through every stage of growth. Whether you’re already in the market or thinking about entering private wealth, you can trust their team’s deep expertise in retail alternatives to help you reach your goals.
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We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Liquid vs Private Credit
00:12 Sponsor Message Ultimus
01:44 Career Path to Oak Hill
04:28 PE Lessons for Lenders
06:33 Downside With Right Tail
07:11 Workouts and Recovery Rates
08:32 Private vs Liquid Recoveries
09:54 Choosing Sponsor Partners
11:25 Relationships in Volatility
13:29 Oak Hill DNA and Relative Value
14:29 Crossroads of Markets
15:27 Challenges of Unconstrained
16:35 LP Risk Spectrum
17:47 T Rowe Deal Genesis
19:56 Wealth Channel Products
21:01 One Ticker Multi Strategy
22:27 Liquidity Tradeoffs and Diligence
24:49 Liquid vs Illiquid Risk
26:59 Origination Edge Sources
28:29 Speed and Size Advantage
28:58 Serving Any Market Solution
29:36 Alternatives in Target Date
31:41 Media Misconceptions
33:17 Liquidity Expectations
33:43 Wrap Up and Thanks
Disclaimer: Alt Goes Mainstream is an independent podcast and newsletter focused on the private markets industry. It is published for informational and educational purposes only and does not constitute investment advice, financial advice, legal advice, or any other form of professional advice. Nothing contained herein should be construed as a recommendation to buy, sell, or hold any security or investment product. Some companies, individuals, or organizations featured or mentioned in this newsletter may be current or past sponsors of Alt Goes Mainstream. Sponsorship does not influence editorial coverage, but readers should be aware that a relationship might exist. The author may hold direct or indirect investments in companies, funds, or other entities mentioned in this podcast or newsletter.
The views expressed are the interviewee’s, are subject to change without notice, and may differ from those of other T. Rowe Price associates. Information and opinions are derived from proprietary and nonproprietary sources deemed to be reliable; the accuracy of those sources is not guaranteed. This material does not constitute a distribution, offer, invitation, recommendation, or solicitation to sell or buy any securities. It does not constitute investment advice and should not be relied upon as such. Investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.
Some or all alternative investments may not be suitable for certain investors. Alternative investments are typically speculative and involve a substantial degree of risk. Each fund and account may be leveraged and engage in other speculative practices that may increase the risk of investment loss. Investors must realize that they could lose all or a substantial amount of their investment. In addition, the fees and expenses charged may be higher than the fees and expenses of other investment alternatives, which will reduce profits.
T. Rowe Price has $1.7T total assets under management and OHA has $112B assets under management as of March 31, 2026.
In the United States, securities are offered through T. Rowe Price Investment Services, Inc., a broker dealer, registered with the U.S. Securities and Exchange Commission and a member of FINRA. Securities are offered through T. Rowe Price Investment Services, Inc., and advisory services are offered by Oak Hill Advisors, L.P. OHA is a T. Rowe Price company. T. Rowe Price Investment Services, Inc. and Oak Hill Advisors, L.P. are affiliated. 5629822
